3196808
I started working with my husband 10 years ago. When I joined the business, we set it up as a Qualified Joint Venture, split 60/40. About 3 years later, we changed the percentage to 80/20 since I wasn't working as much as I anticipated I would (I do make sure I meet the IRS requirements for materially participating in the business). I am wondering if we can change the percentage again? I don't see anything in the IRS literature that addresses this. Thanks in advance.
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In a Qualified Joint Venture (QVJ), the spouses must share the items of income, gain, loss, deduction, and credit in accordance with each spouse's interest in the business. The percentage may change from year-to-year and is not reported on Schedule C for either spouse. Be sure to keep good documentation of how you calculated the participation percentage you use.
Thank you!
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